Bihar Sponge Iron

Bihar Sponge Iron Limited has filed a new Writ Petition (WPC/24721 of 2025) against South Eastern Coalfields Limited (SECL) in the Chhattisgarh High Court. The dispute involves penalties of Rs 215.28 lacs imposed by SECL for short lifting of coal quantity under the Fuel Supply Agreement during FY 2011-12. The High Court had previously directed both parties to appear before SECL's General Manager on April 21, 2025, to resolve the matter within 60 days. However, after a meeting was held at SECL's office in Bilaspur, the company decided to pursue legal recourse as SECL did not address their concerns. The company states there will be no material impact considering the size of its operations.

Bihar Sponge Iron Limited received a notice from the Labour Court, Jamshedpur regarding a petition filed by 18 ex-employees under the Payment of Wages Act, 1936. The ex-employees are seeking payment of wages amounting to Rs 3.64 crore. The petitioners claim their employment has not been terminated but allege that wages payable to them have not been disbursed. The company plans to contest the matter and file an appropriate response before the court. Bihar Sponge Iron stated that considering the size of company's operations, there will not be a material impact or the impact will be limited to the extent of the claim. The company emphasized it is neither recognizing the claim nor confirming any amount.

Bihar Sponge Iron Limited announced its unaudited financial results for the quarter ended June 30, 2025. The company reported net revenue from operations of Rs. 7,749.98 lakhs, compared to Rs. 10,385.48 lakhs in the same quarter last year. Total income decreased to Rs. 8,378.93 lakhs from Rs. 11,185.45 lakhs year-over-year. Profit after comprehensive income was Rs. 211.70 lakhs, down from Rs. 368.72 lakhs in the corresponding quarter of the previous year. Basic earnings per share stood at Rs. 0.23 versus Rs. 0.41 in the same period last year. The Board approved several key appointments: re-appointment of Mrs. Kumkum Modi as Non-Executive Non-Independent Director effective October 1, 2025, appointment of M/s Soniya Gupta & Associates as Secretarial Auditors for five years (FY 2025-26 to FY 2029-30), and re-appointment of M/s. M.K. Singhal & Co. as Cost Auditors and M/s. Sarat Jain & Associates as Internal Auditors for FY 2025-26. The auditors issued a qualified review report citing concerns over a Rs. 215.28 lakhs penalty from South East Coalfields Ltd., unquantified promoter loan settlements, and interest provisions on government soft loans totaling Rs. 8,272.61 lakhs.